What is the name given to profits earned by a central bank from money creation?
A)seigniorage
B)interest arbitrage
C)moral hazard
D)fiat money

Question

Quizplus · Accepted Answer

Seigniorage is the name given to the profits made by a central bank from money creation. This refers to the difference between the cost of producing money and its face value. In other words, it is the profit made by the central bank from creating new money and lending it out at a higher interest rate than the cost of producing it.

What Is the Name Given to Profits Earned by a Central